The meaning of an entrepreneur changes from industry to industry, country to country as well time to time. Economists never had a consistent definition of “Entrepreneur”.
The word “Entrepreneur” is the drive of the French word verb entreprendre, it means to “to undertake”. In this article, you will discover the meaning, characteristics, and functions of an entrepreneur.
The general keywords ‘business’ and ‘risk’ are interrelated. If there is no real business or risk, a person cannot be named an entrepreneur.
Entrepreneurs mean to start a new business venture by taking a risk and controlling it in this technology-enabled competitive global environment.
The dimension of the business, the variety of work involved, the age or the formal education of the entrepreneur, etc. does not restrict the entry of the entrepreneur. Similarly, the mark of success or failure does not matter.
Entrepreneurs are the people who share a creative idea or product or service with the world. They try to make the market a better place where the requirement of the consumers can be fulfilled.
Entrepreneurs are owners, producers, market creators, decision-makers, and risk-takers. Entrepreneurs are referred to as the fourth ‘factor of production. Entrepreneurs play an important part in a country’s economy.
Howard Stevenson defines, ” Entrepreneurship is the pursuit of opportunity beyond resources controlled.”
The Oxford English Dictionary defines “an entrepreneur as a person who builds and manages a business, taking on greater than usual financial risks in order to do so.”
Characteristics of an Entrepreneur
The entrepreneur has some special characteristics like innovative thinking, imagination, passion, sincerity, etc. Following are some characteristics of an entrepreneur.
1. Intellectual Capabilities:
The first characteristic of an entrepreneur is intellectual capabilities. An entrepreneur is a creative thinker. He has logical good intelligence. He can examine business conditions. This understanding will assist him to make the right decisions.
2. Future vision:
The entrepreneur has a genuine vision of future market conditions. He also has information about the outside business environment. This will assist him to make the right decisions accounting for the conditions and varies in the market. So, he can take timely action for the same.
3. Hard work:
This is an important characteristic of an entrepreneur. It is more valuable when a new venture is started. He has to work long hours. Many a time he has to manage the main sectors of the business alone. This will make him successful.
4. Technical knowledge:
Knowledge is the key to progress. An entrepreneur should own full knowledge of his industry An entrepreneur has a great technical understanding of his business. The entrepreneur can modernize himself with the latest knowledge about the product, method, and technology.
Communication can solve any problem that’s why entrepreneurs should have good communication skills. An entrepreneur requires to interact with many people like clients, suppliers, creditors, employees, etc. He must be able to present his plans and strategies efficiently. There must be a decent understanding between the sender and the recipient of the message. This is a very important characteristic of an entrepreneur.
6. Highly Optimistic:
An entrepreneur has to always think confidently. He is always cheerful and confident about the market conditions even in bad times. Such a positive nature assists him in continuing his business strongly.
7. risk-bearing capacity:
The seventh characteristic of an entrepreneur is risk-bearing capacity. A successful entrepreneur takes estimated risks He is ready to face challenges and always tries to find new and more extra opportunities.
The last characteristic of an entrepreneur is self-confidence. An entrepreneur has self-confidence, not overconfidence. He has positive motives to reach his goals. Such self-motivation holds him strong and confident to face many barriers.
Functions of an Entrepreneurs
Following are the main functions of an entrepreneur
The first and main function of an entrepreneur is innovation. An entrepreneur is fundamentally an innovator. He proposes new successions of means of production. He must introduce new products or make changes to the current products. Innovation is also essential to solve difficulties that occur in the business. Entrepreneurs can create innovative products according to the changing needs of the market.
2. determination of objectives:
The second function of an entrepreneur is the determination of objectives. An entrepreneur has to determine the plans and goals of the business. There may be variations between the primary and secondary objectives of the enterprise. Entrepreneurs can modify these goals as per the market situation.
3. Development of Market:
The entrepreneur has to find out different methods for marketing the product and services of his enterprise. He can lead surveys or research to know the customer’s demands. When the markets are developed regularly, the demands of the customers will grow.
4. New Technology
In this modern world, every day there is a discovery of new technology. The introduction of new technology will always result in the growth of business eg. Modern machinery, advanced technology, modern and systematic methods of production, etc.
5. Good relations:
The fifth function of an entrepreneur is good relations. In the beginning, as a start-up founder builds his/her business, it’s necessary to get the team in place and make them think about the vision. It is essential to keep a healthy working environment in an organization. It depends upon the effective relationships between subordinates and superiors. Coordination among the employees is the key to success. An entrepreneur should be fair as well as friendly to their subordinates. This increases the efficiency of the business. Entrepreneurs should be transparent and should keep patient.
6. Organizing Funds:
This function of the entrepreneur is important. An entrepreneur must find various financial support because adequate and continuous finance is always essential for business. Good and honest and good relations with investors are important for every business.
7. Taking Decisions:
The last but not least function of the entrepreneur is making a decision. An entrepreneur has to make smart decisions for his enterprise. The entrepreneur has to take various types of decisions daily. Fit and right decisions are also essential and important for a decent business plan. He should always consider the advantages and disadvantages before taking any business decision. Decisions should flexible according to the situation. Before making any decision entrepreneur analyzes the problem properly.
Qualities of a Successful Entrepreneur
Successful business people have money qualities in common with one another.
These individuals are concentrated on building their business work and reducing any obstacles or disturbances to their purposes. An entrepreneur has extensive strategies and outlines the tactics to achieve them. A strong entrepreneur is disciplined enough to take steps every day towards the completion of his objectives.
The entrepreneur does not ask stupid questions like whether he can succeed or whether he is worthy of success. He is assured with the knowledge that he will execute his business succeed. He shows confidence in every he does. By having confidence, you will know that you are able of reaching your goals, and that failure doesn’t make you a loser.
Entrepreneurs understand that every time and condition is an opportunity. Ideas are constantly being made about workflows and performance, people skills, and potential new business. He can look at everything around him and focus on his intentions.
4. Self Starter:
An entrepreneur understands that if something needs to be done he should start it himself. He sets the parameters and makes sure that plans follow that path. He is active, not waiting for someone to give support.
Many companies are created because an entrepreneur knows he can do a job better than others. He wants to win the competition of business. An entrepreneur will highlight his own company’s track history of success.
One aspect of creativity is being able to make links between apparently unrelated events or circumstances. The entrepreneur often comes up with solutions that are combinations of other items. He will repurpose products to market them to different industries. Most entrepreneurs are creative in character and often show the signs of a creative personality, often being innovators in their space.
An entrepreneur is not frustrated by his failures. an entrepreneur looks like an opportunity for success. He is determined to make all of their efforts succeed, so will try until it does. A successful entrepreneur doesn’t accept that something cannot be done. Never give up. These are important qualities that every entrepreneur should have.
8. Strong communication skills:
The entrepreneur has powerful communication skills to sell the product and to motivate the worker. The most successful entrepreneur knows how to motivate his employees so the business evolves. He is very good at highlighting the advantages of any circumstances and coaching others to their success.
9. Strong work ethic:
The successful entrepreneur will often be the first person to come to the office and the last one to go. He will come on his days off to make sure that an outcome meets his expectations. His mind is continually on his work, whether he is in or out of the workplace.
Passion is the most essential quality of a successful entrepreneur. He genuinely loves his work. He is ready to put in those extra hours to build a successful business because there is a joy his business gives which goes beyond the money. A strong entrepreneur will always be learning and researching methods to make the business better.
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FAQ on Entrepreneur
1. Who are Entrepreneurs?
Answer- Entrepreneurs are the people who share a creative idea or a product or a service with the world. They try to make the market a better place where the requirement of the consumers can be fulfilled.
2. What is an Entrepreneur?
Answer- An entrepreneur is “a man who starts a business and is ready to take risks to make money”.